Category Archives: Digital Transformation

Managing Both the Present and the Future

GUEST POST from Janet Sernack

In our last blog, we described the three characteristics that offer senior executives a “unique unfreezing opportunity” from the disruptive COVID-19 hiatus and the rate of exponential technological change. These involved developing a future-ready company that builds upon pandemic-related accomplishments and re-examines (or even reimagines) the organization’s identity, how it works, and how it grows. This means that every organization, regardless of its size and specialization, requires its leaders, and teams paradoxically, to be both competent and confident and be both human-centered and customer-centric, in effectively managing both the future and the present.

Simultaneously, we all need to ensure that they capture the best of what we’ve all learned to keep the digital momentum going and, at the same time, initiate the shift to quantum – by exploring, discovering, identifying, and unleashing the possibilities and opportunities of a post-COVID-19 world. To maximize, what McKinsey & Co describes as a “turning point” for economies: where new patterns of consumer and business behavior have emerged at extraordinary speed and can be sustained over long periods of time because digitization has accelerated change faster than many believed previously possible.

Unlearn, relearn, reskill and upskill

Reinforcing that managing both the future and the present requires generating new ways of harnessing and maximizing people’s collective and connective intelligence by:

Investing in helping people unlearn, relearn, reskill and upskill to meet the needs of jobs transformed by technologies created by globally accelerated digitization.
Helping people create vital new references and landing points for a future that they may not have previously imagined, and by;
Supporting them in being comfortable with the discomfort this brings.

Focusing on developing an organizational culture that is more adaptive and innovative, where people operate as a connected, mentally tough, and emotionally agile workforce; and are enabled and empowered to dance at the edge of their comfort zones, co-create value, deliver a great customer experience and succeed in a transforming market.

Both Human and Customer-Centric

Through developing both human-centric and customer-centric relationships that:

Enable people to shift from human-centered doing to human-centered being through connecting compassionately, creatively, and courageously through reciprocity and collaboration. Acknowledging that consumers have shifted largely to digital channels and many people are at home “nesting” and at the same time “languishing” in their remote and virtual workplaces.
Empower people to become customer-centric by co-creating collective value that customers appreciate and cherish. Acknowledging that the virus has interrupted, accelerated, and even reversed longstanding and conventional consumer and business habits.
Engage people in co-creation and in taking collective action to ensure that the rebound is not uneven. Enabling people to reboot creatively by maximizing the opportunities arising from the acceleration in the adoption of digital, automation, and other technologies.

As well as using innovation to add value to the common good in ways that improve humanity, by focusing on people, profit and planet.

Seizing the opportunity – it’s paradoxical

Developing future fitness requires people to not only unlearn, and see the world with fresh eyes, it also involves being able to sense and perceive it through a paradox lens; which helps us shift our focus across polarities of thought, from binary and competitive to critical, conceptual, and complementary thinking.

An often-quoted example is that as humans, we need to both exhale and inhale, we need to both rest and be active, rather than just do one or the other, or simply just either exhale or inhale, either rest or be active.

This means that a paradox is formed by contradictory yet interrelated elements that consistently coexist, and as leaders, teams, and coaches, we need to master this to develop the capability of managing both the future and the present simultaneously.

Embracing paradox

Embracing paradox involves being able to consciously shift cognitively from perceiving a prescriptive “either/or” world, which makes things black and white, right and wrong, mandatory or voluntary.

Towards embracing both poles, or polarities, and finding a balance within the dis-equilibrium.

As leaders, teams, and coaches, to seek equilibrium, by balancing both an ability to maximize and minimize people by exerting both powers over them, and by sharing power with them, to unleash both possibility and necessity thinking.

Dancing with dis-equilibrium

Letting go of an “either/or” perspective creates the safe spaces that allow people to flow with “what is” and to then evoke and provoke our thinking to perceive “what could be” possible.

By leading through dancing with dis-equilibrium to co-create a state of equilibrium to be an effective, agile, and creative leader and team member in a disruptive VUCA world.

In ways that allow people to confront and flow with tension and conflict, scrutinize any inherent contradictions by evoking and provoking creative ways in which the competing and complementary demands can be met in managing both the future and the present simultaneously.

Being both human-centric and customer-centric

Developing future-fitness requires leaders, teams, and coaches to be both human-centric and customer-centric simultaneously – to co-create organizations that integrate the values of human-centered design as a framework to balance the needs of the organizations with the needs of its users, customers, and communities, and for the common good and future of humanity.

Being human-centered

Being human-centered is also defined as being “marked by humanistic values and devotion to human welfare” which means that to create more human-centered leaders, teams, and people – we need to know how to shift the paradigm both from human-centered doing, and towards human-centered being by:

Helping people explore and embrace their own humanness.
Being willing, enabled, and empowered to develop reciprocal and collaborative relationships.
Connecting to ourselves and others openly through how we feel, express and tap into our own emotions and those of others we interact with.
Being altruistic in serving the common good in ways that potentially add value to the future of humanity.

Being customer-centric

Customer-centricity is a way of doing business that fosters a positive customer experience at every stage of the customer journey. It aims at building customer loyalty and satisfaction leading to referrals for more customers. Anytime a customer-centric business makes a decision, it deeply considers the effect the outcome will have on its customers and users.

To create more customer-centered leaders, teams, and people – we need to shift the paradigm from seeing business as both a source of revenue, wealth, and profit and towards customers being the reason and source of business success, or not, by:

Developing a customer-centric purpose, vision, and mission that every leader, team, and team member is aligned to, and has a line of sight to, and is able to contribute towards its achievement.
Anticipating customer and potential user needs.
Ensuring that there are a rigorous and regular customer and cultural assessment metrics and feedback mechanisms in place.
Ensuring that leadership and team capabilities to adapt and grow are aligned to achieve the purpose, vision, mission, and goals.
Enabling every leader and team member to connect with, and listen to customers, and then build products that meet customer needs, anticipates customer wants, and provide a level of service that keeps customers coming through the door and advocating for the brand or business.

Harnessing collective and connective intelligence

Reinforcing that managing both the future and the present requires generating new ways of harnessing and mobilizing people’s collective and connective intelligence in ways that ultimately co-create organizations that integrate the values of both innovation and human-centered design as a framework.

This helps balance the needs of the organizations with the needs of its users, customers, and communities, as well as enables leaders, teams, and organizations to collaborate towards contributing to the common good and to the future of humanity. It will also help people co-create both vital new reference points and landing strips for a future that they may not have previously imagined, and support them in being comfortable with the discomfort this brings.

This is the next blog series of blogs, podcasts, and webinars on Developing a Human-Centric Future-Fitness organization.

Find out more about our work at ImagineNation™

Find out about The Coach for Innovators Certified Program, a collaborative, intimate, and deep personalized innovation coaching and learning program, supported by a global group of peers over 8-weeks, starting October 19, 2021. It is a blended learning program that will give you a deep understanding of the language, principles, and applications of a human-centered approach to innovation, within your unique context. Find out more.

Image credit: Pixabay

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Data-driven Decision Making

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Leveraging Analytics for Effective Digital Transformation Planning

Data-driven Decision Making

GUEST POST from Chateau G Pato

In today’s rapidly evolving business landscape, digital transformation has become imperative for organizations aiming to stay competitive. However, embarking on a successful digital transformation journey requires careful planning and informed decision-making. In this article, we will explore the significance of data-driven decision making and how leveraging analytics can contribute to effective digital transformation planning. To illustrate the impact, we will showcase two compelling case studies that demonstrate the successful implementation of data-driven strategies.

Case Study 1: Netflix’s Transformation Tailored by Data Insights

Netflix, a global streaming giant, has disrupted the entertainment industry by adopting an intuitive data-driven approach. Before transitioning from a DVD rental service to a digital streaming platform, Netflix leveraged analytics to identify customer behavior patterns and preferences. By collecting data on customer viewing habits, ratings, and searches, Netflix gained deep insights into customer preferences, enabling them to curate a personalized user experience.

Netflix’s decision to invest in original content production was also driven by data insights. The streaming giant analyzed the viewing patterns and ratings of popular third-party content to identify genres and themes with high user engagement. Consequently, the company created a data-driven content strategy, resulting in blockbuster shows like House of Cards and Stranger Things.

By utilizing data to drive informed decision making, Netflix was able to revolutionize the entertainment landscape. Their digital transformation empowered them to scale rapidly and maintain a loyal customer base by personalizing content offerings.

Case Study 2: Amazon’s Customer-Obsessed Approach to Digital Transformation

Amazon’s unparalleled success stems from its relentless focus on understanding customer needs and preferences. Through data-driven decision making, Amazon garnered transformative insights that set them apart in the e-commerce space.

Amazon’s recommendation engine is a testament to their data-driven strategy. By leveraging advanced analytics and machine learning algorithms, they gather vast amounts of data on customer behavior, purchase history, and preferences. This wealth of data is then analyzed to generate personalized product recommendations that not only improve the customer experience but also foster greater customer loyalty and increased sales.

Furthermore, Amazon’s fulfillment centers optimize operations with data-driven analytics. The company collects and analyzes countless data points related to inventory levels, delivery schedules, and customer demand. This real-time analysis enables Amazon to streamline operations, ensure efficient product availability, and offer fast and reliable shipping to maintain their customer-centric approach.

Through their data-driven decision making, Amazon has transformed the e-commerce landscape, providing customers with a seamless shopping experience, and setting industry benchmarks.

Leveraging Analytics for Effective Digital Transformation Planning:

1. Identifying Opportunities: Data-driven decision making allows organizations to identify crucial opportunities for digital transformation. By analyzing customer data, emerging market trends, and competitive landscapes, organizations can pinpoint areas ripe for transformational change and adapt their strategies accordingly.

2. Assessing Risks: Analyzing data can help organizations make well-informed decisions while mitigating risks associated with digital transformation efforts. By evaluating historical data, identifying potential roadblocks, and predicting potential challenges, organizations can proactively design strategies to mitigate risks and maximize transformation success.

3. Enhancing Customer Experience: Data-driven insights enable organizations to understand their customers on a granular level, unlocking the insights needed to create personalized experiences. By analyzing customer data and behavior, organizations can offer tailored products, services, and experiences, resulting in increased customer satisfaction and loyalty.

4. Streamlining Operations: By leveraging advanced analytics, organizations can optimize internal processes and streamline operations. This leads to greater efficiency, improved productivity, and cost reductions, positively impacting the overall success of digital transformation initiatives.

Conclusion

Data-driven decision making is instrumental in planning and executing successful digital transformation strategies. Organizations such as Netflix and Amazon have demonstrated the transformative power of leveraging analytics to drive effective decision making and achieve their digital transformation goals. By basing decisions on data insights, organizations can identify opportunities, minimize risks, enhance the customer experience, and streamline operations. Embracing a data-driven approach is no longer a choice but an imperative for organizations striving to succeed in an ever-changing digital landscape.

SPECIAL BONUS: The very best change planners use a visual, collaborative approach to create their deliverables. A methodology and tools like those in Change Planning Toolkit™ can empower anyone to become great change planners themselves.

Image credit: Pixabay

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A Trigger Strategy for Driving Radical, Transformational Change

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A Trigger Strategy for Driving Radical, Transformational Change

GUEST POST from Greg Satell

There’s an old adage that says we should never let a crisis go to waste. The point is that during a crisis there is a visceral sense of urgency and resistance often falls by the wayside. We’ve certainly seen that during the Covid pandemic. Digital technologies such as video conferencing, online grocery and telehealth have gone from fringe to mainstream in record time.

Seasoned leaders learn how to make good use of a crisis. Consider Bill Gates and his Internet Tidal Wave memo, which leveraged what could have been a mortal threat to Microsoft into a springboard to even greater dominance. Or how Steve Jobs used Apple’s near-death experience to reshape the ailing company into a powerhouse.

But what if we could prepare for a trigger before it happens? The truth is that indications of trouble are often clear long before the crisis arrives. Clearly, there were a number of warning signs that a pandemic was possible, if not likely. As every good leader knows, there’s never a shortage of looming threats. If we learn to plan ahead, we can make a crisis work for us.

The Plan Hatched In A Belgrade Cafe

In the fall of 1998, five young activists met in a coffee shop in Belgrade, Serbia. Although still in their twenties, they were already grizzled veterans. In 1992, they took part in student protests against the war in Bosnia. In 1996, they helped organize a series of rallies in response to Slobodan Milošević’s attempt to steal local elections.

To date, their results were decidedly mixed. The student protests were fun, but when the semester ended, everyone went home for the summer and that was the end of that. The 1996 protests were more successful, overturning the fraudulent results, but the opposition coalition, called “Zajedno,” soon devolved into infighting.

So they met in the coffee shop to discuss their options for the upcoming presidential election to be held in 2000. They knew from experience that they could organize rallies effectively and get people to the polls. They also knew that when they got people to the polls and won, Milošević would use his power and position to steal the election.

That would be their trigger.

The next day, six friends joined them and they called their new organization Otpor. Things began slowly, with mostly street theatre and pranks, but within 2 years their ranks had swelled to more than 70,000. When Milošević tried to steal the election they were ready and what is now known as the Bulldozer Revolution erupted.

The Serbian strongman was forced to concede. The next year, Milošević would be arrested and sent to The Hague for his crimes against humanity. He would die in his prison cell in 1996, awaiting trial.

Opportunity From The Ashes

In 2014, in the wake of the Euromaidan protests that swept the thoroughly corrupt autocrat Viktor Yanukovych from power, Ukraine was in shambles. Having been looted of roughly $100 billion (roughly the amount of the country’s entire GDP) and invaded by Russia, things looked bleak. Without western aid, the proud nation’s very survival was in doubt.

Yet for Vitaliy Shabunin and the Anti-Corruption Action Center, it was a moment he had been waiting for. He established the organization with his friend Dasha Kaleniuk a few years earlier. Since then they, along with a small staff, had been working with international NGOs to document corruption and develop effective legislation to fight it.

With Ukraine’s history of endemic graft, which had greatly worsened under Yanukovych, progress had been negligible. Yet now, with the IMF and other international institutions demanding reform, Shabunin and Kaleniuk were instantly in demand to advise the government on instituting a comprehensive anti-corruption program, which passed in record time.

Yet they didn’t stop there either. “Our long-term strategy is to create a situation in which it will be impossible not to do anti-corruption reforms,” Shabunin would later tell me. “We are working to ensure that these reforms will be done, either by these politicians or by another, because they will lose their office if they don’t do these reforms.”

Vitaliy, Dasha and the Anti-Corruption Action Center continue to prepare for future triggers.

The Genius Of Xerox PARC

One story that Silicon Valley folks love to tell involves Steve Jobs and Xerox. After the copier giant made an investment in Apple, which was then a fledgling company, it gave Jobs access to its Palo Alto Research Center (PARC). He then used the technology he saw there to create the Macintosh. Jobs built an empire based on Xerox’s oversight.

Yet the story misses the point. By the late 60s, its Xerox CEO Peter McColough knew that the copier business, while still incredibly profitable, was bound to be disrupted eventually. At the same time it was becoming clear that computer technology was advancing quickly and, someday, would revolutionize how we worked. PARC was created to prepare for that trigger.

The number of groundbreaking technologies created at PARC is astounding. The graphical user interface, networked computing, object oriented programing, the list goes on. Virtually everything that we came to know as “personal computing” had its roots in the work done at PARC in the 1970s.

Most of all, PARC saved Xerox. The laser printer invented there would bring in billions and, eventually, largely replace the copier business. Some technologies were spun off into new companies, such as Adobe and 3Com, with an equity stake going to Xerox. And, of course, the company even made a tidy profit off the Macintosh, because of the equity stake that gave Jobs access to the technology in the first place.

Transforming An Obstacle Into A Design Constraint

The hardest thing about change is that, typically, most people don’t want it. If they did, it have already been accepted as the normal state of affairs. That can make transformation a lonely business. The status quo has inertia on its side and never yields its power gracefully. The path for an aspiring changemaker can be heartbreaking and soul crushing.

Many would see the near-certainty that Milosevic would try to steal the election as an excuse to do nothing. Most people would look at the almost impossibly corrupt Yanukovych regime and see the idea of devoting your life to anti-corruption reforms as quixotic folly. It is extremely rare for a CEO whose firm dominates an industry to ask, “What comes after?”

Yet anything can happen and often does. Circumstances conspire. Events converge. Round-hole businesses meet their square-peg world. We can’t predict exactly when or where or how or what will happen, but we know that everybody and everything gets disrupted eventually. It’s all just a matter of time.

When that happens resistance to change temporarily abates. So there’s lots to do and no time to wait. We need to empower our allies, as well as listen to our adversaries. We need to build out a network to connect to others who are sympathetic to our cause. Transformational change is always driven by small groups, loosely connected, but united by a common purpose.

Most of all, we need to prepare. A trigger always comes and, when it does, it brings great opportunity with it.

— Article courtesy of the Digital Tonto blog
— Image credit: Pixabay

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Don’t Forget to Innovate the Customer Experience

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Don't Forget to Innovate the Customer Experience

Too often we speak about Innovation, Customer Experience, Digital Transformation, Employee Experience and Organizational Change as very distinct and separate things.

But is this the right approach?

Those of you who have read both my first book Stoking Your Innovation Bonfire and my second book Charting Change know that the main reason that the second book even exists is because innovation is all about change.

Apple couldn’t bring the iPod, iTunes and the iTunes store to market without inflicting incredible amounts of change upon the organization and building many different new organizational capabilities and hiring many new types of people with many types of expertise new to the organization.

I’ve also written about BIG C and little c change, with BIG C change including transformations of many types (including digital) and little C change including projects and other small initiatives. And yes, every project changes something, so every project is a change initiative. And so yes, project management is in fact a subset of change management, not the typical wrong way ’round that change management is usually made subservient to project management.

Stop it!

Architecting the Organization for Change

For an invention to have any chance of becoming an innovation, the organization must transform, and to do this well we must design corresponding changes in both employee experience and customer experience to accelerate and integrate:

Value Creation
Value Access
Value Translation

See my important article Innovation is All About Value for more background on these three phrases.

Because of the interconnectedness between innovation, change, transformation, customer experience and employee experience we must look at these different specialties holistically and in a coordinated way if we are to maximize our chances of successfully completing the journey from invention to innovation.

Service Design and Journey Mapping have a role to play, as does Human-Centered Design because people are at the heart of innovation and transformation. These tools can help uncover the customer needs and help visualize what the NEW experiences must look like for both employees and customers to maximize the holistic value created and the ability of customers to access that value as effortlessly as possible.

As we work to design the potential innovation as a product or a service or a combination of the two, we must also consciously design the customer experience and employee experience to enhance to possibilities of this invention becoming an innovation. This includes potentially designing OUT touchpoints in current journeys that people may taken as a given, but maybe no longer need to exist if we are truly keeping the customer and their wants/needs at the center of our focus.

As part of your innovation activities, consider creating customer and employee journey maps, printing them poster size and placing them front and center on your innovation wonder wall so that you can ask your innovation team the following questions:

What is different about this customer or employee touchpoint when considering our potential innovation?
How could we design out the need for this customer or employee touchpoint?
With our potential innovation, what customer or employee touchpoints may no longer be necessary?
With our potential innovation, what new customer or employee touchpoints may we need to create?
What organizational and employee knowledge and capabilities are we missing, that we must have, to deliver the necessary and expected customer and employee experiences?

As we explore these questions, they allow us to look beyond the product or service that forms the basis of the potential innovation that we are creating and create more value around it, to make our customers’ and employees’ experiences of our potential innovation better, and to increase our chances of more successfully translating the holistic value for its potential customers.

Customer and employee experiences are not detached and separate from the new products and services forming the basis of your innovation activities.

The change and transformation that accompany innovation are not separate either.

We must look at all of these specialties together and not see them as isolated things, otherwise we will fail.

So keep innovating, but be sure and consider the change and transformation necessary to help you be successful and how you are going to innovate your customer and employee experiences at the same time!

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How to Close the Sickcare AI DI Divide

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How to Close the Sickcare AI DI Divide

GUEST POST from Arlen Meyers

The digital divide describes those having or not having access to broadband, hardware, software and technology support. It’s long been acknowledged that even as the digital industry exploded out of this country, America lived with a “digital divide.” While this is loosely understood as the gap between those who have access to reliable internet service and those who don’t, the true nature and extent of the divide is often under-appreciated. Internet infrastructure is, of course, an essential element of the divide, but infrastructure alone does not necessarily translate into adoption and beneficial use. Local and national institutions, affordability and access, and the digital proficiency of users, all play significant roles — and there are wide variations across the United States along each of these.

There is also a sickcare artificial intelligence (AI) dissemination and implementation (DI) divide. Infrastucture is one of many barriers.

As with most things American, there are the haves and the have nots. Here’s how hospitals are categorized. Generally, the smaller ones lack the resources to implement sickcare AI, particularly rural hospitals which are, increasingly, under stress and closing.

So, how do we close the AI-DI divide? Multisystems solutions involve:

Data interoperability
Federated learning Instead of bring Mohamed to the mountain, bring the mountain to Mohamed
AI as a service
Better data literacy
IT infrastructure access improvement
Making cheaper AI products
Incorporating AI into a digital health whole product solution
Close the doctor-data scientist divide
Democratize data and AI
Create business model competition for data by empowering patient data entrepreneurs
Teach hospital and practice administrators how to make value based AI vendor purchasing decisions
Encourage physician intrapreneurship and avoid the landmines
Use no-code or low-code tools to innovate

We are still in the early stages of realizing the full potential of sickcare artificial intelligence. However, if we don’t close the AI-DI gaps, a large percentage of patients will never realize the benefits.

Image Credit: Pixabay

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The Importance of Change Leadership in Digital Transformation

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The Importance of Change Leadership in Digital Transformation

GUEST POST from Chateau G Pato

In the evolving landscape of the digital age, organizations face unprecedented challenges in staying relevant and competitive. The ability to successfully navigate digital transformation is crucial for survival and growth. At the heart of this transition lies the critical need for effective change leadership. Change leadership is a nuanced and strategic approach that goes beyond mere management of change; it involves inspiring and guiding people through transformation. In this article, I will explore the importance of change leadership in digital transformation and illustrate this with two insightful case studies.

Why Change Leadership Matters

Change leadership is essential for several reasons:

Vision and Direction: Leaders articulate a compelling vision for the future, aligning everyone’s efforts towards common goals.
Motivation and Engagement: Effective change leaders inspire and motivate employees, fostering a culture of engagement and innovation.
Managing Resistance: Proactive identification and addressing resistance to change is crucial for smooth transitions.
Building a Roadmap: Leaders create a structured approach to implementing change, ensuring coherent and phased progression.

Case Study 1: General Electric (GE)

The Challenge: GE, a century-old industry giant, faced immense pressure to adapt to the rapidly advancing technological landscape. The challenge was to transition from a traditional manufacturing behemoth into a high-tech enterprise focused on digital solutions.

The Leadership Approach: Jeff Immelt, the then-CEO, spearheaded GE’s digital transformation by championing a vision to become a “Digital Industrial” company. Under his leadership, GE established GE Digital and invested billions in technologies such as the Industrial Internet of Things (IIoT) and analytics.

Key strategies included:

Culture Shift: Immelt emphasized a culture of innovation, agility, and continuous learning across the company.
Collaboration: Cross-functional teams were created to foster collaboration and break down silos.
Investment in Talent: GE hired thousands of software engineers and data scientists to build digital capabilities.

The Outcome: GE’s digital transformation journey had its ups and downs, but it successfully positioned the company as a leader in the industrial internet space. The company’s revenue from digital services grew significantly, and GE Digital became a pivotal part of its overall strategy.

Case Study 2: LEGO Group

The Challenge: In the early 2000s, LEGO Group faced declining sales and increasing competition from digital game markets. The need to evolve and integrate digital strategies into its business model was paramount.

The Leadership Approach: Jørgen Vig Knudstorp, who became CEO in 2004, led LEGO’s turnaround with a strategic focus on digital innovation and customer engagement. His leadership transformed LEGO from a struggling company into a powerhouse of digital creativity.

Key strategies included:

Digital Products: Development of digital toys and immersive experiences that integrated physical and digital play.
Community Engagement: Engaging with LEGO enthusiasts through online platforms and co-creation opportunities.
Streamlined Operations: Overhauling the supply chain and leveraging data analytics to optimize production and distribution.

The Outcome: Through Knudstorp’s visionary leadership, LEGO experienced a remarkable resurgence. Digital platforms like LEGO Digital Designer and LEGO Ideas, combined with innovative products, bolstered the brand’s appeal to new generations. By integrating digital strategies, LEGO not only recovered but thrived, achieving record sales and profitability.

Conclusion

Digital transformation is not merely about implementing new technologies; it requires a transformation of the entire organizational ethos. Effective change leadership plays an indispensable role in guiding organizations through these complex transitions. As demonstrated by GE and LEGO, visionary leaders who prioritize culture, collaboration, and innovation can successfully navigate the tumultuous waters of the digital age. By embracing change leadership principles, organizations can unlock the full potential of digital transformation and secure their place in the future.

Image credit: Pexels

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The Future of Retail

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E-commerce and Digital Transformation

The Future of Retail: E-commerce and Digital Transformation
GUEST POST from Art Inteligencia

The retail industry stands at a precipice of transformation. E-commerce is no longer just an option; it has become a linchpin in retail strategy, offering new avenues for growth and customer engagement. The rapid adoption of digital technologies is shaping the future of retail, driving innovation in customer experiences, supply chain management, and more. In this article, we will delve into the dynamics of e-commerce and digital transformation, supported by two case studies that exemplify these changes.

The Drivers of Digital Transformation in Retail

Several factors are driving digital transformation within the retail industry:

Consumer Expectations: Modern consumers demand seamless, personalized shopping experiences, both online and offline. To meet these expectations, retailers are leveraging data analytics, artificial intelligence, and immersive technologies.
Technological Advancements: The advent of new technologies such as the Internet of Things (IoT), augmented reality (AR), and blockchain is changing how retailers operate and engage with customers.
Competitive Pressure: With e-commerce giants setting high standards for customer experience and operational efficiency, traditional retailers must digitize to remain competitive.
Pandemic Acceleration: The COVID-19 pandemic has acted as a catalyst for digital transformation, pushing retailers to innovate rapidly to survive and meet the heightened demand for online shopping.

Case Study 1: Amazon – The E-commerce Behemoth

Amazon’s journey from an online bookstore to becoming a global e-commerce platform provides invaluable lessons in digital transformation.

Innovative Technologies

Amazon utilizes a plethora of cutting-edge technologies to maintain its competitive edge:

Artificial Intelligence and Machine Learning: Amazon’s recommendation engine is a profound example of how AI can drive sales by providing personalized shopping experiences.
Logistics and Automation: Through advanced robotics and automated warehouses, Amazon ensures efficient inventory management and fast delivery.
Voice Commerce: With Alexa, Amazon has ventured into voice-enabled shopping, simplifying the buying process for its customers.

Customer-Centric Approach

Amazon’s “customer obsession” principle ensures that their strategies are always aligned with customer needs and preferences.

Case Study 2: Walmart – From Brick-and-Mortar to Omni-channel Retailing

Walmart exemplifies the successful digital transformation of a traditional retailer. Balancing physical stores with a robust online presence, Walmart has effectively embraced omni-channel retailing.

Digital Innovations

Several initiatives highlight Walmart’s digital transformation:

Walmart App: The app enhances the customer shopping experience by offering mobile payment options, digital shopping lists, and personalized recommendations.
Pick-up and Delivery Services: Walmart’s investment in pick-up and delivery options caters to the evolving shopping habits of customers who prefer convenience and minimal contact.
Blockchain for Supply Chain Transparency: Walmart uses blockchain technology to enhance the traceability and reliability of its supply chain.

Focus on Data Analytics

Walmart leverages data analytics to optimize inventory, improve product offerings, and enhance customer service. Insights drawn from data help Walmart stay ahead in a highly competitive market.

The Road Ahead

The future of retail is undoubtedly digital. Retailers need to invest in technology to meet evolving consumer expectations and stand out in a crowded market. Key areas where retailers should focus include:

Personalization: Leveraging data to deliver personalized experiences will be crucial in winning customer loyalty.
Technology Integration: Seamless integration of online and offline channels will define a consistent customer journey.
Sustainability: As consumers become more eco-conscious, sustainable practices enabled by technology will become a competitive advantage.
Innovation: Continual innovation in areas like AI, AR, and blockchain will drive the next wave of transformation in retail.

Conclusion

The retail landscape is rapidly evolving, driven by technological advancements and shifting consumer behaviors. Retailers who embrace digital transformation and innovative strategies will thrive in this new era. From Amazon’s strategic use of AI to Walmart’s omni-channel approach, the examples are abundant. As we move forward, the intersection of e-commerce and digital transformation will continue to reshape the future of retail.

Bottom line: Futurology is not fortune telling. Futurists use a scientific approach to create their deliverables, but a methodology and tools like those in FutureHacking™ can empower anyone to engage in futurology themselves.

Image credit: Pixabay

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The Role of Change Management in Driving a Successful Digital Transformation

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The Role of Change Management in Driving a Successful Digital Transformation

GUEST POST from Chateau G Pato

Digital transformation has become a critical imperative for organizations across industries. With the rapid advancements in technology and the changing expectations of customers, businesses must continuously reinvent their strategies, processes, and offerings. However, for any digital transformation initiative to succeed, one essential element cannot be overlooked: effective change management. In this thought leadership article, we will explore the significance of change management in driving successful digital transformations, backed by two compelling case studies.

Case Study 1: Netflix’s Transformation from DVD Rentals to Streaming Powerhouse

Netflix is a prime example of a company that embraced change management to fuel its transition from a DVD-by-mail rental service to a digital streaming giant. In 2007, following the introduction of their streaming service, Netflix faced several barriers, including resistance from customers accustomed to DVDs and the need to negotiate licensing agreements with content providers. Recognizing the need for comprehensive change management, Netflix’s leadership team implemented a multi-pronged approach:

1. Visionary Leadership: Netflix CEO, Reed Hastings, championed the vision for digital streaming, communicating it clearly to the entire organization. This ensured that everyone understood the need for change and were aligned with the company’s transformation goals.

2. Employee Empowerment: Netflix focused on enabling and empowering their employees during the transition. They invested heavily in employee training programs to enhance digital skills and actively encouraged risk-taking and innovation. By embracing the change from within, employees played a pivotal role in driving the company’s digital transformation forward.

3. Customer-Centricity: To ensure customer buy-in, Netflix carefully considered its user experience design. They conducted extensive user research, actively solicited feedback, and adapted their platform based on user preferences. This customer-centric approach allowed Netflix to seamlessly steer customers towards digital streaming and make it a preferred mode of content consumption.

By combining visionary leadership, employee empowerment, and customer-centricity, Netflix successfully navigated the challenges associated with their digital transformation. Today, they are the unquestionable leader in the streaming industry.

Case Study 2: General Electric (GE) and the Industrial Internet of Things (IIoT)

GE, a renowned conglomerate, embarked on its digital transformation journey by embracing the Industrial Internet of Things (IIoT). To remain competitive in an evolving landscape, GE recognized the need to leverage technology to transform its products into intelligent, connected devices. With this objective in mind, GE adopted a change management strategy that involved the following key elements:

1. Change Communication: Clear and consistent communication played a critical role in GE’s digital transformation. The company established a robust communication framework to educate stakeholders about the benefits of IIoT and its potential impact on various departments. This transparency helped allay concerns, build support, and foster a shared understanding of the transformation’s goals.

2. Skills Development: GE prioritized the development of digital skills across its workforce. Recognizing that digital transformation necessitates significant shifts in day-to-day operations, the company offered training programs, mentorship, and reskilling initiatives for its employees. By equipping employees with the necessary skills, GE ensured that they were well-prepared to adapt to new technologies and play vital roles in the company’s digital future.

3. Agile Methodologies: Embracing agile methodologies, GE adopted a phased approach to its digital transformation. By breaking the transformation into manageable increments, the company could continuously evaluate progress, iterate on solutions, and drive organizational alignment. This iterative approach minimized disruption and ensured a smooth transition to the digital landscape.

Through effective change management strategies, GE successfully modernized its offerings, created new revenue streams, and positioned itself as a leader in the IIoT space.

Conclusion

The case studies of Netflix and GE highlight the importance of change management in driving successful digital transformations. From visionary leadership and employee empowerment to customer-centricity and robust change communication, these organizations demonstrated the power of change management in achieving their digital goals. As businesses increasingly undertake digital transformation journeys, they must prioritize change management efforts to navigate complexities successfully, foster organizational readiness, and secure long-term success in the digital era.

Image credit: Unsplash

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Digital Transformation Virtual Office Hours – Session One

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84% of digital transformations fail, according to research by Michael Gale of PulsePoint Group.

A digital transformation is the journey between a company’s current business operations to a reimagined version of itself from the perspective of how a digital native would build the same business operations leveraging the latest technology and scientific understandings of management science, leadership, decision science, business and process architecture, design, customer experience, etc.

Here is a quick review list of ten things to keep in mind for a successful digital transformation:

Reimagine your business from a digital native perspective
A Human-Centered Data Model (customers & employees)
Put your customers and employees at the center
Identify intersection of what’s needed & what’s possible
Simplify processes
Reduce complexity
Design elegant experiences
Technology comes at the END – not the beginning
Start by making strategic choices
Build capabilities needed to achieve your transformation

LinkedIn Virtual Office Hours – Digital Transformation – Session One

On Tuesday, August 31, 2021 at 11am EDT I opened up a Virtual Office Hours session on LinkedIn about Digital Transformation.

To participate in this first in a series of virtual office hours, you only need do two things:

Follow me on LinkedIn
Visit this LinkedIn post, add a comment with your question and I will answer it!

Here is an example of how these Digital Transformation Virtual Office Hours will go:

QUESTION ONE from Howard Tiersky:

How can you determine if your data model is human centered?

Can you talk more about that idea?

ANSWER from Braden Kelley:

Great question Howard! The best way to evaluate whether your data model is human-centered is to look at the most frequent actions driven by your data.

The first mistake people make in building their data model is to not start with the end in mind.

The second mistake people make in building their data model is to not be brutal in insisting that nearly 100% of the data gathered is actionable and not just nice to have. BUT, it is far more difficult to make the decision not to gather a piece of data than it is to just make your forms one field longer.

To try and create a human-centered data model you want to focus on making sure you’re only gathering actionable data and that it is being used to drive outcomes for humans (customers, employees, partners, etc.).

Finally, one side effect that people don’t consider when building their data model and gathering non-actionable data is that they end up inflating the number of reports that get built and that people have to sort through to find the ones that are human-centered and do contain actionable data.

So, design your data models from value derived for humans and the actions necessary to execute, evolve and deliver – backwards!

QUESTION TWO from Mark Schaefer:

In my experience across many verticals, it seems like digital transformation usually occurs only when the pain in business necessitates it. In other words, the cost of avoiding change becomes greater than the cost of implementing solutions.

Do think this is still the case or are companies outside of tech beginning to think more long-term and strategically about these transformations?

ANSWER from Braden Kelley:

While it is definitely true that most companies only engage in the perceived pain of transformation when it is less than the perceived pain of avoiding change, an increasing number of organizations are recognizing that doing nothing is no longer a viable option.

A true digital transformation not only has the potential of equipping the organization to better fight off entrance by digital natives, but also to deliver improved customer and employee experiences and to improve employee retention and recruitment in this tight labor market.

And yes, companies outside of tech are beginning to think more strategically about these transformations as I am about to begin working with a company in the natural resources industry.

Companies in every industry can no longer put off this important work, and in fact a true digital transformation has the side benefits of increasing innovation capabilities and capacity when done well.

Click to Add Your Question on LinkedIn

p.s. If you’re interested in Digital Transformation, you’ll also enjoy some of the articles I’ve written for a number of publications including CEO World, the HCL Technologies Blog, and of course Human-Centered Change and Innovation:

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Co-creating Future-fit Organizations

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Co-creating Future-fit Organizations

GUEST POST from Janet Sernack

In our second blog in this series of three, we opened the door to a threshold for a new kind of co-creative, collaborative and cohesive team spirit that catalyzes change through “innovation evangelism”. Focusing on building both internal and external talent, through empowering, equipping, and enabling internally cohesive and effective innovation teams. They apply their collaborative and collective intelligence towards initiating open innovation initiatives co-creating future-fit organizations that are human-centric, adaptive, engaging, inclusive, collaborative, innovative, accountable, and digitally enabled.

Innovation evangelists are change catalysts who courageously experiment with different business models and processes, to crowdsource broad and deep innovation capabilities. Usually in new ways that breakthrough corporate antibodies and barriers and deliver sustainable, meaningful, and purposeful change. Where, according to the recent Ideascale “Crowd Sourced Innovation Report 2021” “crowdsourced innovation capabilities have grown and innovation output indicators like implementation rate and time to implement have improved. In fact, businesses that were able to rapidly adapt and focus on innovation(in 2020) are poised to outperform their peers in the coming years”.

Innovation teams don’t innovate

The purpose of an innovation team is to create a safe environment that unlocks organizational and its key external stakeholder’s collective intelligence and innovation agility (capacity, competence, and confidence) to build the capability to change as fast as change itself.

Where the goal is to create a high performing, connected, and networked workplace culture where people:

Understand and practice the common language of innovation, what exactly it means in their organizational context, as well as exactly what value means to current and potential customers as well as to the organization,
Develop a shared narrative or story about why innovation is crucial towards initiating and sustaining future success,
Have the time and space to deeply connect, collaborate, and co-create value, internally and externally with customers, suppliers, and other primary connection points to build external talent communities and value-adding ecosystems,
Maximize differences and diversity of thought within customers as well as within communities and ecosystems,
Generate urgency and creative energy to innovate faster than competitors,
Feel safe and have permission to freely share ideas, wisdom, knowledge, information, resources, and perspectives, with customers as well as across communities and ecosystems.

How innovation teams learn and develop

Sustaining success in today’s uncertain, unstable, and highly competitive business environment is becoming increasingly dependent on people’s and team’s abilities to deeply learn, adapt and grow. Yet most people and a large number of organizations don’t yet seem to value learning and adaptiveness as performance improvement enablers, especially in enabling people and teams to thrive in a disruptive world. Nor do they understand how people learn, nor how to strategically develop peoples’ learning agility towards potentially co-creating future-fit organizations that sustain high-impact in VUCA times.

At ImagineNation™ we have integrated the four E’s of learning at work; Education, Experience, Environment, and Exposure with 12 key determining factors for co-creating future-fit organizations that sustain high-impact in VUCA times through our innovation team development, change, learning, and coaching programs.

Case Study Example

Educational customisation and alignment

After conducting desktop research and key stakeholder sensing interviews, we customized our innovation education curriculum specifically to align with the learning needs of the innovation team.

We aligned the program design to the organization’s strategic imperatives, values, and leadership behaviors, we reviewed the results of the previous culture, climate and engagement surveys, as well as the range of business transformation initiatives. We then applied design thinking principles to “bring to life” the trends emerging, diverging, and converging in our client’s and their customer’s industry sectors.

Focusing on:

enabling people to perform well in their current roles,
building people’s long-term career success,
developing their long-term team leadership and membership development capabilities,
laying the foundations for impacting collectively towards co-creating future-fit organizations.

Experiential learning a virtual and remote environment

We designed and offered a diverse and engaging set of high-value learning and development experiences that included a range of stretch and breakthrough assignments as part of their personal and team development process.

Focusing on:

encouraging people to engage in a set of daily reflective practices,
offering a series of customized agile macro learning blended learning options, that could be viewed or consumed over short periods of time,
engaging playful activities and skills practice sessions, with structured feedback and debrief discussions,
providing an aligned leadership growth individual and team assessment process,
introducing key criteria for establishing effective team cohesion and collaboration,
linking team action learning activities and evidence-based assignments to their strategic mandate ensuring their collective contribution towards co-creating future-fit organizations.

Environment to support and encourage deep learning

We aimed at creating permission, tolerance, and a safe learning environment for people to pause, retreat, reflect, and respond authentically and effectively, to ultimately engage and upskill people in new ways of being, thinking, and acting towards co-creating future-fit organizations.

Focusing on:

developing peoples discomfort resilience and change readiness,
encouraging people to be empathic, courageous, and compassionate with one another, to customers as well as to those they were seeking to persuade and influence,
allowing and expecting mistakes to be made and valued as learning opportunities and encouraging smart risk-taking,
reinforcing individual learning as personal responsibility and team learning as a mutual responsibility and establishing a learning buddy system to support accountability,
offering a series of one-on-one individual coaching sessions to set individual goals and support people and the teams’ “on the job” applications.

Exposure to different and diverse learning modalities

We designed a range of immersive microlearning bots by providing regular, consistent, linked, multimedia learning options and a constantly changing range of different and diverse learning modalities.

Focusing on:

providing an informative and targeted reading list and set of website links,
setting a series of coordinated thought leading webinars, videos, podcasts, and magazine articles aligned to deliver the desired learning outcomes,
outlining fortnightly targeted team application and reinforcement tasks,
helping the team to collaborate and set and communicate their passionate purpose, story, and key outputs to the organization to build their credibility and self-efficacy,
designing bespoke culture change initiatives that the innovation team could catalyse across the organization to shift mindsets and behaviors to make innovation a habit for everyone, every day.

Collectively contributing to the good of the whole

Co-creating future-fit organizations require creativity, compassion, and courage to co-create the space and freedom to discuss mistakes, ask questions, and experiment with new ideas. To catalyse change and help shift the workplace culture as well as crowdsource possibilities through open innovation.

In ways, that are truly collaborative, and energize, catalyze, harness, and mobilize people’s and customers’ collective genius, in ways that are appreciated and cherished by all. To ultimately collectively co-create a future-fit organization that contributes to an improved future, for customers, stakeholders, leaders, teams, organizations as well as for the good of the whole.

This is the final blog in a series of three about catalyzing change through innovation teams, why innovation teams are important in catalyzing culture change, and what an innovation team does, and how they collectively contribute toward co-creating the future-fit organization.

Find out about our learning products and tools, including The Coach for Innovators Certified Program, a collaborative, intimate, and deep personalized innovation coaching and learning program, supported by a global group of peers over 8-weeks, starting Tuesday, October 19, 2021.

It is a blended and transformational change and learning program that will give you a deep understanding of the language, principles, and applications of a human-centred approach and emergent structure (Theory U) to innovation, within your unique context. Find out more

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